Follow the Money

The details of the Sanofi-Genzyme merger were leaked over the weekend, indicating that there will likely be a $74 cash component plus a CVR. A number of deals were announced this morning. The deal with the largest cash component was Beckman Coulter, another healthcare company.

Increased M&A, specifically the cash kind, is a big boost for the market but especially for the sector where it occurs. I remain of the firm belief that this cash will eventually filter into the healthcare sector, specifically the biotech industry. Right now it seems the cash is filtering just about everywhere else.

3 comments:

Chaos! said...

What's a CVR?

Tsachy Mishal said...

It stands for Contingent Value Right. GENZ shareholders will be paid based on how their drug Campath does post acquisition. News report are saying the CVR is worth $3. I think it is safe to assume its worth at least $2. I believe the deal is worth at least $76

Tsachy Mishal said...

The CVR has the potential to be worth $6 or more if the drug does well. I am talking about the market price of the CVR once it starts trading.